Spain’s national debt reaches highest level in over century

Spain’s state debt reached €1.1 trillion ($1.24 trillion) in June, the highest level since 1909, according to the data released by the Bank of Spain.

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Sovereign debt has been continuing its unswerving escalation since 2008, when it was 39.4 percent of the national gross domestic product (GDP).

Debt rose 4.7 percent in June compared to a year ago when it amounted to €1,057 trillion.

The figure, equivalent to 100.9 per cent of the country’s output, is well above the target projected for the current year.

Madrid is aiming for 99.1 percent of debt-to-GDP by the end of 2016, after last year’s 99 percent total.

Following the report, the Economy Ministry claimed that it remained on track to meet year-end targets, disputing the data.

“There are big seasonal variations that have to be taken into account,” the ministry said, adding that the increase in public debt has been slowing since 2013.

Despite the parliamentary deadlock and increasing pressure from the European Commission to rein in public and private debt levels, Spanish economy is growing at one of the fastest rates in the eurozone, with the growth forecast for the current year raised to 2.9 percent from 2.7 percent, Reuters reports.

Prime Minister Mariano Rajoy reportedly relies on this significant growth cycle hoping it will help Spain to meet its deficit reduction targets for this year.

Earlier this month, the country avoided EU penalties for failing to reach budget deficit goals.